The Suez Canal Economic Zone (SCZone) plans to deliver 500,000 sqm of the Russian industrial zone by the end of this year.
Yehia Zaki, head of the SCZone, told Daily News Egypt that it was planned to complete the development of 500,000 sqm of land in the Russian industrial zone by March 2020, but the SCZone will intensify its efforts to complete this phase by the end of December 2019.
He explained that there is an understanding between the Egyptian and Russian sides on the implementation of the Russian industrial zone on an area of 5.25 sqkm.
Zaki disclosed that there have been bilateral workshops between both parties on the development and implementation of the Russian industrial zone.
Russia will establish a modern industrial and logistic zone in the Suez Canal region, specifically for the hardware, wood, and pharmaceutical industries.
The industrial zone will be implemented under the usufruct system for 50 years, automatically renewed for five consecutive years if the two sides agree.
Egypt and Russia signed an agreement to establish the Russian industrial zone in May last year. The investments of the 5.25 sqkm zone amounts to $6.9bn, located in East Port Said, which is expected to be delivered over three phases.
He also mentioned the negotiation between the SCZone and DP World to develop 40 sqkm in Ain Sokhna.
The target industries in this region include medical, telecommunications, building materials, logistics, textile, automotive, food, energy, and petrochemicals.
This comes after partnership agreement signed between the two parties during the Youth Forum in Sharm El-Sheikh in November 2017, on the establishment of a major development company in partnership between the SCZone and DP World. Both parties will share the right of management at 51% (SCZone) and 49% (DP World).
A total of 245 companies are set to operate in the southern region, and 43 companies are under licensing, he said.
He added that the current year will witness the completion of the negotiations between the SCZone, Bolloré, Toyota, and NYK alliance to contract the operation of Roll-on/roll-off (RORO) docks along 600 metres of coastal land with $150m investment.